Apex Investment Essay

AccessLines initial financing came in the form of strategic alliances. In 1989, McCaw Cellular Communication invested in AccessLine, providing a sizeable amount of their intial capital. This funding secured the strategic partnership between AccessLine and McCaw Cellular. This launched further alliances between AccessLine and other phone company carriers, in which AccessLine granted them an exclusive franchise in the market for a set fee. The carriers were permitted to market AccessLines service under their own company name.AccessLine also developed partnerships with equipment manufacturers such as Stratus information processing system and Motorola, also providing them with a franchise in exchange for funding. However AccessLines growth prompted the need for larger investments. Thus, in 1994, AccessLine diversified their financing to professional integrity investors. Providing funding worth $15. 5 million, AccessLines CFO Bill Stuart, and Morgan Stanleys Bill Brady executed the tra nsaction, involving the private placement from five investors. Such a scheme was chosen due to AccessLines lack of capital in the initial stages of AccessLines establishment.AccessLine was not lacking in management or technology and therefrom was not in need of a venture capitalist in its early stages to control the company or provide the company with expertise or administration. Private investors, such as McCaw Cellular Communications, were more appropriate for AccessLine in that they provided the necessary funding without coercing AccessLine to forsake control of the company. McCaw also provided both clientele and investments. AccessLines lack of experience from mergers and acquisitions forced them to eventually turn to venture capitalists in 1994, a time when their strategy had changed.The venture capitalists could help in evaluating a butt joint company through their experience in purchasing and selling businesses. The funds from Apex Investment Partners would serve beneficia lly for AccessLine because of their vast knowledge and experience in the industry. George Middlemas and Rick Bolander, both of whom had joined Apex in the early 90s, had had previous experiences working in the telecommunications industry and racked up an extensive list of contacts in the industry. Thus, Apex would eventually prove to be a profitable investment for AccessLine.